Clayton Williams Energy, Inc. (the “Company”) (NYSE:CWEI) previously
disclosed that its Board of Directors had initiated a review of
strategic alternatives to enhance shareholder value and had engaged
Goldman, Sachs, & Co. to serve as financial adviser in that process. The
Company confirmed today that this strategic review is ongoing, and that
the Board and its advisers are actively considering possible
transactions as a part of this review. The transactions disclosed in the
Company’s news release dated January 18, 2016 providing an update on
recent activities were not associated with the ongoing strategic review.
There can be no assurance that the strategic review will result in any
transaction in the future, and no decision has been made to enter into
any transaction at this time.

Clayton Williams Energy, Inc. is an independent energy company located
in Midland, Texas.

This release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934.All statements, other than
statements of historical or current facts, that address activities,
events, outcomes and other matters that we plan, expect, intend, assume,
believe, budget, predict, forecast, project, estimate or anticipate (and
other similar expressions) will, should or may occur in the future are
forward-looking statements.These forward-looking statements are
based on management's current belief, based on currently available
information, as to the outcome and timing of future events.The
Company cautions that its future natural gas and liquids production,
revenues, cash flows, liquidity, plans for future operations, expenses,
outlook for oil and natural gas prices, timing of capital expenditures
and other forward-looking statements are subject to all of the risks and
uncertainties, many of which are beyond our control, incident to the
exploration for and development, production and marketing of oil and gas.

These risks include, but are not limited to, the possibility of
unsuccessful exploration and development drilling activities, our
ability to replace and sustain production, commodity price volatility,
domestic and worldwide economic conditions, the availability of capital
on economic terms to fund our capital expenditures and acquisitions, our
level of indebtedness, the impact of the current economic recession on
our business operations, financial condition and ability to raise
capital, declines in the value of our oil and gas properties resulting
in a decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or
fulfill their obligations under existing agreements, the uncertainty
inherent in estimating proved oil and gas reserves and in projecting
future rates of production and timing of development expenditures,
drilling and other operating risks, lack of availability of goods and
services, regulatory and environmental risks associated with drilling
and production activities, the adverse effects of changes in applicable
tax, environmental and other regulatory legislation, and other risks and
uncertainties are described in the Company's filings with the Securities
and Exchange Commission.The Company undertakes no obligation to
publicly update or revise any forward-looking statements.

E&Ps Locking in Cash Flows and Sales Prices OPEC’s agreement to cut production levels has kicked off a rush among shale oil companies to hedge their oil price risk above $50 for 2017 and 2018. The number of E&Ps selling oil for delivery next year has pushed the WTI forward curve into slight backwardation after two years of contango. Compare[Read More…]